Buyer Solvency Clause
(Commercial Purchase and Sale Agreement)

Summary

This buyer solvency representation clause is usually included in a commercial purchase and sale agreement. In this clause, the buyer represents and warrants that it is solvent and capable of performing its financial obligations under the commercial purchase and sale agreement. This clause includes practical guidance and drafting notes. For a full listing of key content covering purchasing and selling commercial real estate, see Purchasing and Selling Commercial Real Estate Resource Kit. For a general discussion on commercial purchase and sale agreements, see Commercial Purchase and Sale Agreements. See Commercial Purchase and Sale Agreement (Long Form) for a general commercial purchase and sale agreement template. For more guidance on standard clauses, see Standard Clauses (Commercial Purchase and Sale Agreement).